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UK Financial Outlook Hinges On Who Replaces Boris Johnson

by | Jul 22, 2022 | News | 0 comments

Palace of Westminster

As I write this Blog, the news channels are in a frenzy over who will replace Boris Johnson as UK Prime Minister. With his determination to cling on to power waning each day, and with the realisation that his time was up, Johnson stated on his resignation that it was “clearly now the will of conservative MPs” that he should go. So now, we shall see if his plan of staying on until October shall pan out, with reports that he faces opposition from a growing number of backbenchers and colleagues.

Markets were relatively subdued on the news as investors have been reading the tea leaves for several days, although the pound rose in the immediate aftermath.

Sterling could be better supported in the coming days with the removal of near-term political uncertainty, but we could see rallies as opportunities to sell given the prevailing economic malaise. The outlook hinges on who will replace Boris Johnson and any clear government policies.

A return to traditional Conservative politics will probably bring about some austerity over the next few years, but also a return to business-friendly policies. However, another populist politician could lead to more of the same approach for the economy.

Johnson’s removal does not change the macroeconomic reality for the UK, as the toxic mix of risingcosts and slowing growth are here to stay, for now.With UK inflation at 9%, we are all feeling the effects of the cost-of-living crisis. However, any significant economic event creates some opportunities. So which stocks should we consider to beat the rising prices of essential goods? There has been rotation into companies with relatively high current earnings that return capital to shareholders with dividends and share repurchases. Commodities have a reputation as a good hedge against inflation. With sanctions against Russia set to continue, China reopening and Summer travel, we have seen Commodities boosted in recent weeks.

 

If you would like to discuss your current investments or future plans we would be happy to schedule a call – Contact details for the CFM team are here and my contact details are:
E: stephen.lovelock@capitalfinancialmarkets.co.uk
T: 0203 6970561.

Stephen Lovelock, July 2022

Please also see the Review of April to July 2022 from Paul Coffin, and ‘Politics, War, Philosophy, the Economy & the Markets‘ from Barrie Newton

Emma Tuckett

Investment Manager

Well-respected Investment Manager, Emma Tuckett, has joined CFM following a successful career at Killik & Co.

After nearly a decade working in Trading and Investments, Emma has worked with clients from a wide range of backgrounds and has extensive experience in Advisory and Discretionary Investment Management, with a particular focus on ESG investing and helping clients align their investments with their long-term objectives and values.

emma.tuckett@capitalfinancialmarkets.co.uk

Joanne Hill

Compliance Manager

Joanne has joined Capital Financial Markets as Compliance Manager having worked in the Independent Financial Advice sector for over 30 years. 

Joanne holds a degree in Business and Finance, the CII Diploma in Financial Planning and has a wealth of experience and knowledge within Financial Services.  Joanne’s role is to protect both Capital Financial Markets and our Clients.

joanne.hill@capitalfinancialmarkets.co.uk

Saffron Heasley

Client Administrator

We are delighted that Saffron joined the CFM team as our business apprentice capably fulfilling the Client Administrator role. Saffron brings enthusiasm, reliability and a strong willingness to learn. In this role, Saffron supports the smooth day-to-day running of the business, providing essential administrative support across the team helping to ensure processes run efficiently and compliantly.

With a keen eye for detail and a proactive approach, Saffron is developing a solid foundation while working closely with colleagues across the organisation. Saffron is a valued member of the team and plays an important role in supporting CFM’s operations as we continue to grow.

saffron.heasley@capitalfinancialmarkets.co.uk

Paula Mitchell

Head of Operations & People

Having worked with us as a consultant for over eight years Paula brings that familiarity to the organisation and has joined the CFM team as Head of Operations & People.

A seasoned finance and HR professional with a masters in HR Management, Paula combines analytical strength with a people-centred approach to drive operational excellence. Paula will be leading the team and supporting Paul with the operations and people strategy ensuring sustainable growth and the smooth running of the business.

paula.mitchell@capitalfinancialmarkets.co.uk